Pound Sterling GBP Foreign Currency Exchange Rate Forecast vs EUR USD CAD

January 22, 2016 - Written by John Cameron

STORY LINK Pound Sterling GBP Foreign Currency Exchange Rate Forecast vs EUR USD CAD

Pound Sterling Advanced against Euro and US Dollar Today

A below par showing from this morning’s UK Retail Sales data for December wasn’t enough to stop the POUND STERLING (currency : GBP) climbing against the Dollar and the euro. Pronounced gains for wholesale oil prices over the past 48hrs have caused investors to up their bets on a Bank of England rate hike for this year and mildly encouraging UK public borrowing figures, out this morning, also helped. The outlook for the Pound is NEUTRAL.

Euro Struggles after Eurozone and German PMIs Miss Estimates

The EURO (currency : EUR) has struggled in the global currency markets following yesterday’s assertion from European Central Bank President Mario Draghi’s that his policy board will be ‘revisiting and possibly reconsider’ its €60bn per month Quantitative Easing programme in March. A generally disappointing set of German and whole of eurozone Purchasing Manager Index surveys, published earlier, have also held back the shared currency, which is now expected to trade on a NEUTRAL TO NEGATIVE footing in the short term. The GBP EUR exchange rate stands at 1.3210.

US Dollar Pares Some Gains Today but Outlook still Neutral to Positive

The US DOLLAR (currency : USD) has pared some of its early week gains so far today. However, he move back up towards the 1.4300 threshold for the GBP USD exchange rate may be technical rather than fundamental in nature. The Dollar has come a long way in a short space of time, so a minor correction was due, but with expectations that another US interest rate increase is not far off, the forecast for the Buck is NEUTRAL TO POSITIVE. The Sterling US Dollar exchange rate currently stands at 1.4309.

Canadian Dollar Advances as Oil Price Rises

The CANADIAN DOLLAR (currency : CAD) has enjoyed a pronounced renaissance against Sterling during the past 24hrs. The move lower for the GBP CAD exchange rate has coincided with a sharp spike higher in the price of a barrel of crude oil. The Loonie will need this move for oil to continue in order to gain further momentum against Sterling, but this afternoon’s Canadian inflation data could change things. In the meantime, the Canadian unit is expected to trade on a NEUTRAL TO POSITIVE footing and GBP CAD stands at 2.0295.

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